Vaga Optics produces medical lasers for use in hospitals. The following accounts and their balances appear in the ledger of Vaga Optics on December 31 of the current year: Preferred 2% Stock, 5120 par (50,000 shares authorized, 25,000 shares issued) 5 3.000.000 Paid-In Capital in Excess of ParPreferred Stock 400,000 Common Stock, 575 par (500,000 shares authorized, 300,000 shares issued) 22,500,000 Paid-In Capital in Excess of ParCommon Stock 540,000 Retained Earnings 55,000,000 At the annual stockholders' meeting on January 51, the board of directors presented a plan for modernizing and expanding plant operations at a cost of approximately $9,500,000. The plan provided (a) that the corporation borrow $4,500,000, (b) that 20,000 shares of the unissued preferred stock be issued through an underwriter, and (c) that a building, valued at $1,200,000, and the land on which it is located, valued at $900,000, be acquired in accordance with preliminary negotiations by the issuance of 27,400 shares of common stock. The plan was approved by the stockholders and accomplished by the following transactions: Mar. 8. Borrowed $4,500,000 from Conrad National Bank, giving a 6% mortgage note. 13. Issued 20,000 shares of preferred stock, receiving $130 per share in cash. 26. Issued 27,400 shares of common stock in exchange for land and a building, ac- cording to the plan. No other expansion-related transactions occurred during March. Instructions Illustrate the effects on the accounts and nancial statements of each of the preceding transactions